Market turmoil raises concerns among Black investors – Insight News

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Updated: March 17, 2025 @ 12:41 am

Stock Market Data, Stock Market and Exchange, Stock Market Crash, Dollar Sign, Moving Down
The U.S. stock markets have continued to experience significant declines, with the Dow Jones Industrial Average dropping to start the week at 890 points (2.1%) to close at 41,912. The S&P 500 and Nasdaq Composite also fell to begin the week by 2.7% and 4%, respectively. The downturn has heightened concerns among Black investors, who have historically faced challenges in wealth accumulation and market participation. “When the ‘check engine’ light is on in America, the car is on the side of the road for Black America,” Antjuan Seawright, a strategist, said in an earlier published interview. “We always feel the pain more than other constituencies.” Financial advisors recommend that Black investors maintain a cautious approach during this period of volatility. According to a report by T. Rowe Price, many Black/African American investors are seeking guidance on financial topics and are interested in having a financial “coach” to help manage their financial health. The report states, “Two out of three (67%) Black/African Americans want to know as much as possible about financial topics. 62% would like a financial ‘coach’ to help manage their financial health.”
Experts have also stressed the importance of building an emergency fund covering six to twelve months of expenses, which can provide financial stability during job loss or economic downturns. Additionally, reviewing and adjusting budgets to distinguish between essential and non-essential expenses can help manage finances more effectively. Enhancing skills to remain competitive in the job market is also advised for career security. Prioritizing debt repayment, especially high-interest debt like credit cards, can prevent financial strain during economic downturns. The looming threat of a government shutdown adds another layer of uncertainty. The Black Economic Alliance has expressed concern that such a shutdown could exacerbate racial economic inequality and inflict long-lasting harm on the U.S. economy. They highlight that the prolonged loss of income poses significant hardships for federal workers, including Black employees from communities still struggling to overcome generations of systemic exclusion from economic opportunity.
The 2020 Ariel-Schwab Black Investor Survey revealed that only 55% of Black Americans reported stock market investments, compared to 71% of white Americans. This disparity results in middle-class Black Americans having less money saved for retirement and less wealth to pass on to future generations. Mellody Hobson, co-CEO and President of Ariel Investments emphasized the urgency of addressing this gap, stating, “Black Americans are already behind the eight ball, and it is disheartening to see that at current savings and investing rates, the wealth gap will continue to expand, endangering our futures and leaving our families exposed.” Hobson said by staying informed and proactive, Black investors can better navigate the challenges posed by economic downturns and policy changes, working towards financial resilience and stability. “We are resilient people, and so we have proven time and time again … we will fight, and we’ll get creative in our fight,” Seawright asserted. “We’re gonna have to use all those tactics and strategies to not just thrive for the next four years but survive.
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